Bumi reports higher coal sales
Thursday, November 3 2016 - 12:48 AM WIB
Bumi said in a statement on Wednesday that coal sales in the January-September period of this year increased by 10.7 percent to 64.6 million tons compared with 58.4 million tons in the corresponding period of last year.
The company said that subsidiary PT Arutmin said its sales increased by 37.5 percent to 7.9 million tons in the third quarter of this year compared with 5.7 million tons in the same period of last year.
Another subsidiary PT KPC, likewise, increased sales by 16.2 percent to 14.8 million tons from 12.7 million tons.
The company said it increased coal mined by 4.5 percent to 62.7 million tons in the first nine months of this year from 60.0 million tons in the same period of last year.
Notably, Arutmin increased coal mined by 43.9 percent to 8.0 million tons in the third quarter of this year, year-on-year.
Bumi said the combined strip ratio was reduced by 2.5 percent to 7.1 in the first three months of this year compared with 7.3 in the corresponding period of last year due to a 4.8 percent reduction at KPC ? reflecting cost efficiency.
Despite the rising trend in coal price in recent months, Bumit said the average selling price (ASP) realized in the January-September period of this year was US$40.1/ton compared with $45.7/ton in the same period of last year, or a reduction by 12.4 percent - due to market conditions and execution of previous contracts
However, the ASP is beginning to show an upward trend from second quarter of 2016 and this is expected to further improve in the fourth quarter and next year, the company said.
Elsewhere, Bumi said production cash cost has sharply reduced to $26.8/ton in first-half of 2016 (compared with $34.6/ton in 2014 and $30.2/ton in 2015) ? or by $7.8/ton since December 2014.
The company said it expects to exceed 85 million tons of coal sales for the year with higher ASP in the fourth quarter of this year. ?Outlook for coal price in 2017 is far more optimistic, particularly on price,? Bumi said.
The company confirmed having advised the Indonesia Stock Exchange that the Jan ? Sep 2016 financials would undergo full audit and would be released by end Dec 2016.
Editing by Reiner Simanjuntak